G-7: No Specifics for Global Credit Rescue

Here is the text of the G-7 joint statement released moments ago here in Washington.

Treasury Secretary Hank Paulson is expected to answer questions in about 30 minutes.

A quick read of the statement gives the impression that the member nations agree to guidelines for helping unfreeze the global credit market, but, if they agree on specific actions, they're not laid out here:

"The G-7 agrees today that the current situation calls for urgent and exceptional action. We commit to continue working together to stabilize financial markets and restore the flow of credit, to support global economic growth. We agree to:

1. Take decisive action and use all available tools to support systemically important financial institutions and prevent their failure.

2. Take all necessary steps to unfreeze credit and money markets and ensure that banks and other financial institutions have broad access to liquidity and funding.

3. Ensure that our banks and other major financial intermediaries, as needed, can raise capital from public as well as private sources, in sufficient amounts to re-establish confidence and permit them to continue lending to households and businesses.

4. Ensure that our respective national deposit insurance and guarantee programs are robust and consistent so that our retail depositors will continue to have confidence in the safety of their deposits.

5. Take action, where appropriate, to restart the secondary markets for mortgages and other securitized assets. Accurate valuation and transparent disclosure of assets and consistent implementation of high quality accounting standards are necessary.

The actions should be taken in ways that protect taxpayers and avoid potentially damaging effects on other countries. We will use macroeconomic policy tools as necessary and appropriate. We strongly support the IMF's critical role in assisting countries affected by this turmoil. We will accelerate full implementation of the Financial Stability Forum recommendations and we are committed to the pressing need for reform of the financial system. We will strengthen further our cooperation and work with others to accomplish this plan."

Will it be enough? We'll find out when the Asian markets open Sunday night, Eastern U.S. time.

Comments

They don't know what to do. Take care of your own country. They're all going to solve some problem in some other country. That's how the problems started. Now they are going to buy worthless stock in bankrupt corporations. Whatever.

Posted by: IV | October 10, 2008 6:49 PM

Sounds way, way too generic. The pressure to do more is going to redouble on Monday as things go south even more. Oy.

Posted by: David | October 10, 2008 7:03 PM

Paulson and Bernanke are nothing but lap dogs for the corrupt Bush regimen.If they had any conscience or integrity at all they would resign.But a big ego dies hard. They are both intent in making their own mistakes...damn the torpedoes,full ahead.

Posted by: Joe | October 10, 2008 7:31 PM

It might work. A lot of people are panicking because they don't see instant action, but the cavalry is just behind the hill and about to come into view. Now, you can debate just how effective various approaches are going to be, but there is real action afoot to get the credit markets going. Add to this the relatively smooth auction of the Lehman credit default swaps today, and I'm quite prepared to believe we've bottomed.

Posted by: Richard | October 10, 2008 7:50 PM

BANKRUPTING THE GOVERNMENT

There is no faster way to bankrupt the government than to buy stocks WITHOUT OWNERSHIP. We have a top guy in the financial market who is an IDIOT. Does he really understand what he is doing? Shortsellers can swallow those billions in seconds. It's tantamount to money transfer from government to shortsellers for free.

SACK HANK PAULSON!!! THIS GUY IS TERRIBLE!!

At least the Brits were buying stock and OWN THE COMPANY. This person is an IDIOT!!

Posted by: spiderman2 | October 10, 2008 7:59 PM

When vacancies happen in the Representation from any state, the executive authority thereof shall issue writs of election to fill such vacancies.

Vacate your offices. We are broke because of you.

Posted by: Post Revolution | October 10, 2008 8:21 PM

The Bush administration, send in seconds war ships to Georgia with not necessarily aid. for Katrina slow help, for the Economy of USA they are thinking, and thinking what to do.

Posted by: J L PICHINTE | October 10, 2008 8:50 PM

You need to think of the children. I wasn't born in trouble. It took years and the help of many people before I figured out trouble. Now it's looking like ole double trouble time is here once again. Paul Newman figured out how to give millions of dollars away for a good cause and the others can't figure out 1+1 and then want us to pay a premium for junk. I have my own little hole in the wall here. Thinking is good. The Washington gestapo act is bad. The Wall Street monopoly is busted. The next boom should be better. The Post here will be fine. Don't oversleep and you won't fall behind. I don't require much sleep at all.

Posted by: Post Revolution | October 12, 2008 5:26 AM

Eugene Robinson in yesterday’s WP talked about his concern that we are in some kind of free fall into the abyss. I must admit that I have the same feeling. ~~~ “Is this a temporary setback or a fundamental shift? When the volatile markets settle down, as they eventually will, is the United States going to be a poorer nation than it was? Will the next generation of Americans lead lives of less affluence and comfort, rather than more? Post Global

It's a fundamental shift. More rather than less for the kids. Once oil really gets free falling faster the U.S. economy will recover faster. A commercial jet is only good up to around $40.00/barrel and past that you don't see good returns. Motor fuel is dropping and that's good for the food situation. The price being paid is that other investments are getting beat down. Stock is always risky. Monopoly always brings things crashing down. Look up monopoly pie. The other problem is the broken islamic bonds, but the scholars are debating that and should have something worked out in 20 or 30 years. Buy war bonds. Our defense will keep growing. Socialism is dying and the milk is killing them. They want to kill us with the oil. It looks like that plan changed. Now they are going to fix it because price fixing broke. All hell broke loose.

Posted by: IV | October 12, 2008 3:13 PM

The old TNT days, for old times sake. Well they're back. The narcotics business is just getting hacked apart. Narcotics funds terrorism and use your imagination from there. All the weak systems are just falling apart. All the weak peeople just don't know what to do now. From Philly with love. Who is going to bailout the junk and junkies? Quality pays for itself, so let the good times roll. Get stoned, we don't care. This story could be big Post. Hire more writers and get a bigger printing plant. Expand the whole operation. Everything will be fine. The kids will understand later.

Posted by: Post Revolution | October 12, 2008 4:12 PM

There is something major missing from the bailout plan. Where is the demand for a spending freeze, a raise freeze, and a bonus freeze for executives who created this greed-infested environment in the first place, and now will receive my tax dollars to bail themselves out? Get over your fantasy spending, Congress!!!